Large commodity trading houses, together with the physical trading operations of big investment banks, are playing an increasingly prominent role in commodity markets and may become systemically important, Bank of Canada Deputy Governor Timothy Lane said on Tuesday.
In a speech to a Calgary business group on the relationship between the financial system and commodity markets, Lane said it was worth asking whether the losses a trading house incurs, or the failure of a house altogether, would have a significant knock-on effect on the financial system as a whole...............................................Full Article: Source